Consider the case of a Sequential-Move game. UofC moves First Part 1. Is UofC 's sub-game Perfect Nash Equilibrium strategy Aggressive or Restrained? (Answer 1 for aggressive and 2 for Restrained) 1 Part 2. Is MRU's sub-game Perfect Nash Equilibrium strategy Aggressive or Restrained? (Answer 1 for aggressive and 2 for Restrained) Number Part 3. How much profit does UofC make under the Sub-game perfect Nash-Equilibrium? Number
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- Consider the following price game: Firm 1 Firm 2 High Low High 20, 20 12, 24 Low 24, 12 14, 14 Remark: In simultaneous move games (games with rows and columns) theconvention is to write the row player’s payoff first and the column player’spayoff second. (a) What is the Nash equilibrium of this game? Recall that for each playeryou should find the best response to each of the opponents’ strategies andunderline the associated payoff. Then look for a cell where both strategiesare best responses to each other. This is a Nash equilibrium. (b) Does either firm have a dominate strategy (a strategy that is always abest response)?1) What are the Nash equilibria? Which one is unreasonable/non-credible threat? 2) What are the subgame perfect Nash equilibria? Does SPNE concept eliminate the unreasonable Nash equilibrium?NASH EQUILIBRIUM Consider the following game in strategic form. bị b2 a1 10,2 4,20 a2 6,28 9,14 аз 8,6 12,4 1-T-0 1-T The Equilibrium Existence Theorem guarantees that this game possesses at least one Nash equilibrium of the form (T*, o*,T*). Which values of a* are part of such an equilibrium? (Mark all values for which an associated equilibrium exists.) Select one or more: O 0.00 O 0.60 O 0.30 O 1.00 O 0.75 O 0.10 O 0.80 O 0.25
- Consider the following classic game, called Hawk and Dove. Player 2 Hawk Dove Hewk 0,0 4,1 Player 1 Dove 1,4 33 Select all pure strategy Nash equilibria and check the corresponding option if you think there exists a mixed strategy Nash equilibrium too. O There exists also a mixed strategy Nash equilibrium OHawk, Dove ODove, Hawk O Hawk, Hawk O Hawk, Hawkfnan421 WWord Gozden Geç r Gorunum Varc m Ne yaomak steci gnz soy evn 1) Two firms, X and Y, are planning to market their new products. Each firm can develop either TV or Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP FIRM X TV 30, 30 50, 35 LAPTOP 40,70 20, 20 A) If both firms make their decisions at the same time and follow maximin (low-risk) strategies, what will the outcome be? B) Suppose both firms try to maximize profits, but Firm X has a head start in planning, and can commit first. Now what will the outcome be? What will the outcome be if Firm Y has a head start in planning and can commit first? I3 0: she makes a pront of $9 An is ISK AVCise and aunty she makes. Let P be the probability that it rains the day of the concert. Find the number P tha makes Ann indifferent between organizing the concert in the Club or at the Park. 8. Compute the mixed strategy Nash equilibrium of the game below: Bungle F2 # Zippy E Left Right DOD F4 Up 2,-1 R I 20 F3 $ BAG 3 4 -2,0 HOT % 5 F5 Down 3,1 T 4,-2 VO MacBook Air 6 F6 Y & 7 F7 * U 8
- 1. For the following game Player B Player A Left 7,17 10,5 4,4 Middle Right 14,11 4,3 10,25 21,21 Тop Middle 14,4 Bottom 7,3 a) Determine the Nash equilibrium is any? b) Represent the game sequentially starting with player 1 and determine the sub-game perfect equilibrium c) Represent the game sequentially starting with player 2 and determine the sub-game perfect equilibrium d) Find the mixed strategy Nash equilibrium of the following game e) Firm 1 Firm 2 High price Low price High price 4,3 2,4 Low price 2,4 3,3rock paper scissors гock 0. -3 1 рарer 1. -1 scissors -1 3 0. (a) Show that xT= ( ) and yT= (3) together are not a Nash equilibrium 3 3 313 for this modified game. (b) Formulate a linear program that can be used to calculate a mixed strategy x € A(R) that maximises Rosemary's security level for this modified game. (c) Solve your linear program using the 2-phase simplex algorithm. You should use the format given in lectures. Give a mixed strategy x E A(R) that has an optimal security level for Rosemary and a mixed strategy y E A(C) that has an optimal security level for Colin.Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-by-two game is a little harder to solve since firm 2’spreferred strategy depends of what firm 1 does. But firm 1 has a dominantstrategy so this game has one Nash equilibrium. Firm 2 Launch Don’tFirm 1 Launch 60, -10 100, 0 Don’t 80, 30 120, 0 What is the Nash equilibrium of this simultaneous-move game? (b) What would the outcome of this game be if instead firm 1 moved first and then, after seeing what firm 1 chose, firm 2 chose it strategy? In this case firm 1 doesn’t necessarily need to choose a best response, but firm 2 must choose a best response since it moves second.
- 2. For the game illustrated in the figure below, find all pure-strategy Nash equilibria and mixed- strategy Nash equilibria (Hint: apply IDSDS first) Player 2 W y 0,20 А 5,30 10,15 Player 1 В 0,5 15,5 5,10 0,5 0,30 -10,5Consider the following game: Player 2 In Out Player 1 In -2,-2 2, 0 Out 0, 2 0, 0 (a) What is the Nash equilibrium of this game, or what are the Nash equilibriaof this game? (b) Does either firm have a dominate strategy (a strategy that is always abest response)? Which? (c) Suppose Player 1 could move before Player 2 and Player 2 could observe Player 1’s move. What do you think would happen?NASH EQUILIBRIUM Consider the following game in strategic form. bị b2 a1 16,12 4,20 a2 6,28 9,14 a3 8,6 12,4 1-T-0 1-T The Equilibrium Existence Theorem guarantees that this game possesses at least one Nash equilibrium of the form (7* , o*, 7*). Which values of T are part of such an equilibrium? (Mark all values for which an associated equilibrium exists.) Select one or more: 0.00 0.60 0.30 0.80 0.25 0.75 0.20 O 1.00